Marine Fuel Hedging Under the Sulfur Cap Regulations
24 Pages Posted: 22 Oct 2021
Date Written: October 15, 2021
We argue that marine fuel consumers and producers can reduce the uncertainty regarding their portfolios under environmental regulations aimed at air pollution reduction. Our results show that uncertainty can be reduced up to 72%. We also identify Gasoil futures as the universal hedging instrument to manage uncertainty.
Keywords: marine fuels, hedging, IMO 2020
Suggested Citation: Suggested Citation
Cech, Frantisek and Zitek, Michal, Marine Fuel Hedging Under the Sulfur Cap Regulations (October 15, 2021). Available at SSRN: https://ssrn.com/abstract=3947516 or http://dx.doi.org/10.2139/ssrn.3947516
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